Forum

Connect, learn and grow with our evergrowing community through Forum section. With over 3000+ community members seeking answers and sharing their knowledge, this is the knowledge hub for you to enrich your mind.

Homepage Forums Financial Management Navigating Credit Terms for New Customers.

  • Navigating Credit Terms for New Customers.

    Posted by Sanya Makwana on April 24, 2023 at 2:53 pm

    As a small business owner, if I receive a large order from a new customer requesting credit terms of 90 days, how should I evaluate the customer’s creditworthiness to decide whether or not to extend credit?

    Priya Jain replied 10 months, 2 weeks ago 3 Members · 2 Replies
  • 2 Replies
  • Raghav Mehra

    Member
    April 24, 2023 at 3:43 pm
    banana-2 779

    Before granting a 90-day credit term to a new customer, small business owners must evaluate their creditworthiness. Collecting detailed information about the customer, such as their business name, address, phone number, and email, is a crucial step in the assessment process.

  • Priya Jain

    Member
    April 24, 2023 at 3:46 pm
    banana-2 899

    It’s important to examine the customer’s payment history with other vendors to determine the risk of default. Late or missed payments are red flags. Other factors that may impact their ability to pay, such as economic conditions, industry trends, and competition, should also be considered.

Log in to reply.